On the economics of optimal timber production in boreal Scots pine stands

Tahvonen, Olli; Pihlainen, Sampo; Niinimäki, Sami

doi:10.1139/cjfr-2012-0494

Cited by 54 publications

(55 citation statements)

References 13 publications

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“…Optimal number of thinnings varied in this study, depending on the penalty term (Equation (9)) and particularly on the discount rate. This result is coherent with earlier studies [39,40]) suggesting, e.g., that higher interest rates decrease the optimal number of thinnings. Mean annual increments (MAIs) associated with the optimal stand management were here slightly lower than presented in existing literature [40,42], varying from app.…”

Section: Discussionsupporting

confidence: 93%

“…With respect to financial performance, our results are in line with existing literature on the same tree species (pine) and growth conditions in Finland (e.g., [36,39,40])-given the fact that we assessed the maximum net present value (NPV) for the ongoing rotation, whereas the existing literature focuses on assessing the maximum bare land value (BLV). However, these two measures (MaxNPV and MaxBLV) can be technically commensurated for comparison (e.g., [41]).…”

Section: Discussionsupporting

confidence: 85%

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Introducing a Non-Stationary Matrix Model for Stand-Level Optimization, an Even-Aged Pine (Pinus Sylvestris L.) Stand in Finland

Pyy

Ahtikoski

Laitinen

et al. 2017

Forests

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Abstract:In general, matrix models are commonly applied to predict tree growth for size-structured tree populations, whereas empirical-statistical models are designed to predict tree growth based on a vast amount of field observations. From the theoretical point of view, matrix models can be considered to be more generic since their dependency on ad hoc growth conditions is far less prevalent than that of empirical-statistical models. On the other hand, the main pitfall of matrix models is their inability to include variation among the individuals within a size class, occasionally resulting in less accurate predictions of tree growth compared to empirical-statistical models. Thus, the relevant question is whether a matrix model can capture essential tree-growth dynamics/characteristics so that the model produces accurate stand projections which can further be applied in practical decision-making. Such a dynamic characteristic in our model is the basal area of trees, which causes nonlinearity in time. Therefore, our matrix model is a nonlinear model. The empirical data for models was based on 20 sample plots representing 8360 tree records. Further, according to the model, stand projections were produced for three Scots pine (Pinus sylvestris L.) sapling stands (age of 25 years, stand density fluctuating from 850 to 1400 stems ha −1 ). Then, (even-aged) stand management was optimized by applying sequential quadratic programming (SQP) among those growth predictions. The objective function of the optimization task was to maximize the net present value (NPV) of the ongoing rotation. The stands were located in Northern Ostrobothnia, Finland, on nutrient-poor soil type. The results indicated that initial stand density had an effect on optimal solutions-optimal stand management varied with respect to thinnings (timing and intensity) as well as to optimal rotation. Further, an increasing discount rate shortened considerably the optimal rotation period, and relaxing the minimum thinning removal to 30 m 3 ha −1 resulted in an increase both in number of thinnings and in the maximum net present value.

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Section: Discussionsupporting

confidence: 93%

Section: Discussionsupporting

confidence: 85%

Introducing a Non-Stationary Matrix Model for Stand-Level Optimization, an Even-Aged Pine (Pinus Sylvestris L.) Stand in Finland

Pyy

Ahtikoski

Laitinen

et al. 2017

Forests

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“…We applied these relatively low interest rates (from 3% to 5%) in the financial analyses since recent literature (e.g. Weitzman 2010;Tahvonen et al 2013) supports the idea of applying low discount rates for long-term (> 20 yrs) investment decisions, as was the case here. With respect to adding ammonium-nitrate into the base fertilizer the results were also straight-forward: the financial performance dropped when ammonium nitrate was added.…”

Section: Financial Performance Of Fertilizationmentioning

confidence: 86%

Fertilization increased growth of Scots pine and financial performance of forest management in a drained peatland in Finland

Moilanen¹,

Hytönen²,

Hökkä³

et al. 2015

Silva Fenn.

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• All fertilizers containing phosphorus and potassium improved the P and K status and the stem growth of Scots pine still 26 years from application.• Wood ash, containing more nutrients than other fertilizers, gave the strongest stand growth response and the highest net present value.• Ash fertilizer treatment outperformed other fertilizer treatments and control in net present value, regardless of the applied discount rate, 3%, 4% or 5%. AbstractThe long-term effects of fertilization on the needle nutrient concentrations, growth and financial performance of a Scots pine (Pinus sylvestris L.) stand was examined in a thick-peated drained peatland forest located in Central Finland. At the trial establishment in 1985, the trees were suffering from P and K deficiencies, but their N status was good. The fertilizer treatments were Control, PK (rock phosphate + potassium chloride), ApaBio (apatite phosphorus + biotite) and wood ash, applied both with and without N and replicated six times. All treatments containing phosphorus and potassium increased foliar P and K concentrations above the deficiency limits up to the end of the study period of 26 years. The effect of the fertilization on stand volume growth of Scots pine was strong and continued still at the end of the study period. The trees on ApaBio and PK plots grew nearly two-fold and those on Ash plots over two-fold compared with the control plots. In a thinning made at the end of the study period the total logging removal on fertilized plots was 1.5-2.2 times greater and included more saw logs than on the control plots. Ash fertilizer treatment outperformed other fertilizer treatments as well as the control. With a 5% discounted equivalent annual income (EAI) of Ash fertilizer treatment was statistically significantly (p = 0.009) almost three times higher than that of control. As a conclusion, fertilization (either using PK fertilizers or Ash) in N-rich drained peatlands is a financially feasible method of management.

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“…Economic theory is based on profit maximization (Venugopal & Ramachandra 2006) and bare land valuation has often been considered as the best option in economic modeling and optimizing profits of even-aged forestry (Faustmann 1849;Viitala 2002;Tahvonen et al 2013;Tahvonen 2016). However, the method of bare land valuation is of little use in analyzing different JSM programs, especially when there is a lack of knowledge about the interactions of the effects of the activities in the regeneration chain and also about their net impact, on growth of the established stand.…”

Section: The Complex Economic Problem Of the Regeneration Chainmentioning

confidence: 99%

Optimization of early cleaning and precommercial thinning methods in juvenile stand management of Norway

Uotila¹

2017

Diss. For.

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The purpose of this thesis was to develop the concept of cost-efficient Juvenile Stand Management (JSM) for planted Norway spruce (Picea abies L. Karst) stands. The principles of time based management were followed, by integrating regeneration activities as a cost-efficient value chain and by minimizing non-value-adding work with straightforward decision making based on forest management plan data.The effects of soil preparation and Early Cleaning (EC) on further development of the stands were studied in intensive field experiments. Extensive survey data were used to develop methods applicable for efficient decision making in JSM, such as estimating need for EC or labor time consumption of PreCommercial Thinning (PCT).Timing of JSM had major effect on its costs; a delay in PCT increased the labor time needed to manage a stand by 8.3% annually. Moreover, 61-70% of the saplings in a typical Norway spruce stand were considered to need EC years before PCT was appropriate to be done. EC was also found to be an effective release treatment as it subsequently increased the diameter growth of crop trees by 21-32%. However, a two-stage management regimen, which included EC and PCT, appeared to be somewhat more labor consuming than the PCT only option. Soil preparation method had a major effect on emergence and growth of non-crop trees, and thus, on overall costs of JSM-program. The results showed that understanding the interactions in regeneration chain activities is important for productive forestry.Furthermore, a priori information can have practical implications in decision making for JSM. Several site or stand attributes were found to explain labor consumption of PCT or the need for EC. However, decision making in daily forestry requires more reliable models. The modelling data should go beyond the data of traditional forest management planning in further research. Big data offers promising opportunities. Foremost, I'm grateful to Timo Saksa who supported me in every situation necessary during this work and encouraged me to finally gain this achievement. I'm very grateful to Juho Rantala for his help, guidance and encouragement, which was invaluable for me as a researcher and for this thesis. Without these two people this work would not have been happened. I'm thankful also to my other supervisors, valuable comments from Pasi Puttonen and Lauri Valsta gave much content for the thesis and made it more coherent. I like to express my gratitude to Juha Lappi, a good colleague next to my room who has been eager to help me with statistics in any moment I've needed it. I'm grateful to my co-authors Pertti Harstela and Nuutti Kiljunen for their help in planning the research and commenting the articles. I'm thankful to Pekka Rossi, Pekka Voipio, Mervi Seppänen, Jussi Nuutinen, and Mikko Nykänen for assisting with field experiments, and to Alisdair McLean and Michael Hardman for revising the English language. I would also like to express my thanks to pre-examiners Doug Pitt and Kari Mielikäinen for their valuable comments.I'm g...

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On the economics of optimal timber production in boreal Scots pine stands

Cited by 54 publications

References 13 publications

Introducing a Non-Stationary Matrix Model for Stand-Level Optimization, an Even-Aged Pine (Pinus Sylvestris L.) Stand in Finland

Introducing a Non-Stationary Matrix Model for Stand-Level Optimization, an Even-Aged Pine (Pinus Sylvestris L.) Stand in Finland

Fertilization increased growth of Scots pine and financial performance of forest management in a drained peatland in Finland

Optimization of early cleaning and precommercial thinning methods in juvenile stand management of Norway

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